In a groundbreaking financial milestone, Israel-based Cato Networks, a pioneer in the secure access service edge (SASE) domain, has announced securing a monumental $238 million in equity investment. This funding round, the largest in Cato Networks' history, propels the company's total funding to an impressive $773 million and places its valuation well above the $3 billion mark. The investment, led by LightSpeed Venture Partners and featuring participation from Adams Street Partners, Softbank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8, signals a resounding vote of confidence in Cato Networks' leadership and the transformative potential of its single-vendor SASE platform.
Cato Networks has strategic plans for the infusion of this fresh capital. Three core areas will benefit from this financial boost. Firstly, the company aims to broaden the reach of its vision and enhance customer success, making its innovative SASE platform accessible to a broader audience. Secondly, it intends to expand its partner ecosystem by offering managed Cato SASE services, fostering collaborative growth in the cybersecurity landscape. Lastly, Cato Networks seeks to bolster its engineering and product team, the driving force behind a continuous stream of innovative capabilities.
Following this investment round, Ravi Mhatre, the founder and managing director of LightSpeed Venture Partners, joins the board of Cato Networks. Mhatre brings a wealth of experience in supporting innovative companies that have disrupted and transformed large legacy markets. His presence on the board is expected to provide valuable guidance as Cato Networks embarks on its next phase of growth, encompassing product expansion, global sales, marketing, and branding initiatives.
Shlomo Kramer, co-founder and CEO of Cato Networks, emphasizes the pivotal role the company plays in the single-vendor SASE market. Cato's SASE platform is uniquely positioned to empower organizations of all sizes by providing optimal security solutions without the complexities, costs, and risks associated with multiple point solutions. Cato Networks' commitment to delivering a seamless customer experience aligns with its vision of enabling IT to move at the speed of business.
The SASE paradigm promises undeniable value to enterprises by converging world-class security infrastructure with a global private backbone. Cato's SASE platform offers an effective alternative to legacy and emerging approaches that often fall short in delivering this outcome. Enterprises grappling with skill shortages, resource constraints, and budget limitations find in Cato Networks a reliable partner for their security and networking needs.
Founded in 2015 by industry luminaries Shlomo Kramer and Gur Shatz, Cato Networks was built with the mission to deliver enterprise security and networking capabilities through a converged cloud service. Cato Networks' unique strength lies in its real-time traffic visibility, serving as the foundation for existing and forthcoming AI/ML capabilities that detect and respond to threats in real time. Its zero-touch deployment model positions the company to extend its end-to-end visibility and control over all enterprise traffic.
Cato Networks boasts a roster of over 1,800 enterprise customers, including renowned names like Carlsberg and TAG Heuer Porsche Formula E. These partnerships underscore the robustness of Cato Networks' platform and its ability to support complex business and technical requirements. In 2022, the company achieved a significant milestone by surpassing the $100 million annual recurring revenue (ARR) mark, reflecting revenue growth exceeding 60% year-over-year.
Cato Networks' remarkable financial achievement and ongoing commitment to innovation signal a transformative era in the world of secure access service edge solutions. With a valuation now surpassing $3 billion, Cato Networks is poised to redefine the cybersecurity landscape, offering enterprises a streamlined and effective approach to securing their networks.